If you own a nonprofit organization, it is important that you run the organization in a way that carries out your mission without creating additional risks for yourself or your organization. Just like how businesses need insurance to properly protect themselves, so do nonprofit organizations. There are a number of types of volunteer liability insurance coverage available.
General Nonprofit Liability Insurance
This type of coverage protects your nonprofit against claims made that pertain to bodily injury and property damage that occur on your premises, from your operations, or from your products.
Sometimes there are gaps in a general nonprofit liability insurance policy. Because of this, it can often be smart to get a separate policy for volunteer liability. Since this plan covers things that fall outside typical liability limits, you want it to provide up to $1 million in protection.
D&O Liability Insurance
Directors & Officers liability insurance or D&O insurance provides coverage for the directors and officers of your nonprofit organization. Directors and officers are always at risk of being sued for either wrongful acts or even mismanagement of the nonprofit. Having D&O coverage can provide protection in case this occurs.
Running a nonprofit comes with many of the same risks that business owners face. Having a good volunteer liability insurance plan can make all the difference!
This may come as a surprise but volunteer work comes with some potential risk. Whether you are a volunteer for a local organization or are a volunteer board member, you run the risk of having a claim filed against you. This can be for an injury that occurs to someone as a result of your service or for fraud or negligence. This is where volunteer liability insurance comes in.
Why do You Need Volunteer Insurance?
Volunteer insurance provides you with the protection you need in case the unthinkable happens. If you are negligent and accidentally cause harm to someone while providing your volunteer services, you could have a claim filed against you. If this happens, you could have to pay thousands of dollars yourself. Volunteer liability insurance covers these costs and protects your assets should the worst case scenario take place.
What is Covered by Volunteer Insurance?
If you volunteer as a director of a nonprofit organization, volunteer insurance can protect you from a variety of claims including:
- Wrongful termination
- Emotional distress
- Copyright infringement
If you volunteer as an individual, you need to make sure that you are covered by the organization you are volunteering for. If you are not insured, you need to invest in your own volunteer liability insurance to ensure you are covered.
Volunteer work comes with a certain amount of inherent risk. Whether you are a director of a nonprofit organization or volunteering as an individual, having volunteer insurance can make all the difference.